🎯 STRisker: Bulletin - Anchorage, AK
Anchorage Eyes 5% Short-Term Rental Tax Amid Housing Crunch
Anchorage STR Tax Hike and Stronger Tenant Protections
Anchorage is taking a fresh swing at its housing crisis — this time by looking straight at short-term rentals. On Tuesday night, the Anchorage Assembly debated AO 2025-97, a proposed measure that would put a 5% tax on every short-term rental transaction, including stays booked on Airbnb and VRBO. If approved by the Assembly, voters would weigh in on the tax at the ballot box.
Assembly Chair Chris Constant, who introduced the proposal, framed it as both a fairness issue and a housing strategy. “These are commercial operations running in residential neighborhoods, changing the character of those neighborhoods in a substantial way and making it harder for people to find a place to rent and live,” he said. Constant also emphasized that STRs benefit from Anchorage’s tourism while squeezing the housing supply — making a dedicated revenue stream timely and justified.
The push is particularly relevant to areas like Girdwood and South Anchorage, where Assembly Member Zac Johnson estimates that up to a third of properties operate as short-term rentals. Johnson noted that affordable housing is “absolutely unattainable” for many locals there, yet he also acknowledged STRs’ importance to the tourist economy — underscoring how delicate the balancing act is.
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Anchorage has been working on STR oversight for years. Previous laws required hosting platforms to provide lot-by-lot details to help the city track taxes and locations, but Airbnb has reportedly refused to comply fully. Constant says enforcement is key, and a new tax could provide funds to do it.
In tandem with the STR tax proposal, the Assembly also discussed AO 2025-93, which would require landlords to compensate tenants forced to vacate due to code violations — twice the monthly rent plus deposits, with the city fronting costs if needed. This reflects a broader push to protect renters from unsafe living conditions.
Both ordinances speak to a bigger Anchorage story: how to balance a thriving tourism market with the urgent need for stable, affordable housing. If the proposed tax goes to voters, it will be a chance for Anchorage residents to decide how much STRs should contribute to the community they’re reshaping.
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